Monday, 27 March, 2023

Blue economy: ADB, IFC express interest to invest $10b in bonds

  • Sun Online Desk
  • 17th March, 2023 11:42:37 AM
  • Print news

Bangladesh can get at least $10 billion from Asian Development Bank (ADB) and the International Finance Corporation (IFC) over the next 10 years through bonds to tap into the vast resources of the Bay of Bengal as the organisations expressed the interest in this regard.

Bangladesh Securities and Exchange Commission (BSEC) gave the information in a recent report sent to the Parliamentary Standing Committee on Planning Ministry.

As part of their interest, BSEC has signed a cooperation agreement on national sustainability bond guidelines with International Finance Corporation (IFC).

The chairman of the Bangladesh Securities and Exchange Commission (BSEC) Prof. Shibli Rubayat Ul Islam and IFC country manager (Bangladesh, Bhutan and Nepal) Martin Holtmann on Thursday signed the agreement at the BSEC office.

Under the agreement, the IFC will also help to develop the bond market – Green, Social, Sustainability, Climate and Blue bonds – in Bangladesh.

Apart from helping to build the capacity of sustainability bond service providers in Bangladesh, the IFC will also support the implementation of the National Sustainability Bond Guidelines.

Under the agreement, the IFC will work closely with the securities regulator to strengthen the reporting and regulatory framework.

The IFC will also work to help revise the corporate governance code and develop the sustainable bonds.

Under the agreement, local market intermediaries and training institutes will get support to hold more training programmes.

The BSEC officials said another objective of the deal with the IFC is to ensure due diligence and corporate governance of the financial institutes.

"The national sustainability bond guidelines will help mobilize finance for the development of the blue and green economy in Bangladesh," IFC country manager Mr. Holtmann said.

He said the IFC is committed to improving environmental, social and governance practices in the country.